Small projects, big plans
(Business Standard 14.02.1994)

Advanced Synergic Microsystems will set up facilities to develop and market a range of hardware and software products for both domestic and global markets.

The issue does not look very attractive. The project is very small .The promoter's stake in the Rs 4.60 crore project is exactly 25 percent. The company is raising a rupee term loan of Rs 1.60 crore from the IDBI to bridge the resource gap. The project is 65 percent equity funded.

The investment plant & machinery represents about 62 percent of the project cost. The import content is only around 11 percent. For a total cost of 51.50 lakh (for the imported plant and machinery) , a contingency provision of Rs 40 lakh on that account is unheard of. The promoters are experienced in this line of business. The object of the issue is quite impressive. It wants to set up facilities to develop a market for a wide range of computer software and hardware products for domestic as well as global market, including CAD/CAM hardware and software.

The company has signed a value-added reseller agreement with Silico Graphics Inc in visual computing , Fortune 500 company and leader in visual computing, for their engineering workstations. To develop the software products and services for the export markets, the company will develop products and services like the IBM AS/400 (mid-range computer), IBM E/S 9000 (mainframe computer) IBM PCs and workstations.

To company proposes to market the IBM PC and workstation based engineering software that caters to computer -aided design and computer-integrated manufacturing. It has tied up with Computer vision of the USA for distribution of their products in the Indian market.

Projections: Sales: Rs 9.85 crore, Rs 12.68 crore and Rs 12.68 crore in 1994-95, 1995-96 and 1996-97.Corresponding PAT: Rs 64 lakh, Rs 71 lakh, Rs 67 lakh.